National leader Xi Jinping stated at China’s annual legislative assembly that he is determined to outperform competitors in his pursuit of becoming a technological superpower. He is not interested in an economic slowdown, a significant national debt, or a trade conflict with the United States.
Historically, the National People’s Congress, which was held in Beijing, served as a platform for Communist Party leaders to engage in public discourse. Despite being appointed by the Party, delegates occasionally expressed their dissatisfaction with officials regarding matters such as pollution. There were even uncommon instances of disagreements among senior officials.
Nevertheless, Xi Jinping has transformed the meeting into a meticulously planned week-long tribute to his vision and himself. This time, he urged China to make strides in the development of advanced technologies, such as biotechnology, artificial intelligence, and new weaponry.
Xi observed the United States’ unprecedented success as a result of decades of U.S. government investment in science following World War II, and he aspires to emulate this success.
He is insistent that China can only modernize its economy, enhance its military capabilities, and achieve world leadership by becoming a global leader in science and more self-sufficient.
Xi’s implicit message is that other initiatives, such as the restoration of confidence among China’s private entrepreneurs, must be in accordance with this overarching national objective.
The annual congress enables Xi to present his priorities as public endorsements. The presence of dissenting perspectives among nearly 3,000 delegates has become exceedingly rare.
On the first day of the congress, Xi met with delegates from Jiangsu province, a critical industrial hub, and advised them to “seize scientific and technological innovation.” On state television, the delegates diligently took notes on his remarks.
Xi listened to reports from scientists and education officials on the second day, underscoring the importance of education in the transformation of China into a “great power in science and technology.”
Xi assumed his green military uniform on the third day to engage in a meeting with members of the People’s Liberation Army. In order to “accelerate the development of qualitatively new combat capabilities,” he demanded that China’s military become more efficient in executing modernization plans, eradicate corruption, and be more flexible in employing advanced technologies.
Although his public statements did not provide specifics, China’s military is currently developing next-generation fighter aircraft, unmanned aerial vehicles, new submarines, and other weapons.
Xi’s priorities were also evident in China’s annual budget, which anticipates a 7.2% increase in military spending, a 6.1% increase in education financing, and an 8.3% increase in government spending on science and technology in 2025. The government established a more modest increase of approximately 5% for social security and healthcare.
This year, China’s government expenditure for science and technology is approximately $172 billion, which is second only to the United States. However, the government’s budget adjustments under Trump could potentially reduce the disparity. The U.S. spent $806 billion on research and development in 2021, including business investments, compared to China’s $668 billion, according to an estimate by the U.S. National Science Foundation from the previous year.
In the past six to seven years of strategic rivalry between the United States and China, the two most critical issues have been technology and geopolitics. China may feel a slight reduction in geopolitical pressure, but Trump will not relax in the technology sector.
Critics contend that Xi’s emphasis on futuristic objectives is detrimental to the provision of assistance to Chinese citizens who are experiencing financial hardship. The economy remains stagnant as a result of the significant decline in housing prices. The number of retirees is increasing, while birth rates have decreased. However, Xi appears to be resolute in his belief that China can resolve its issues by redirecting spending toward industrial modernization and technological initiatives.
So far, Xi has not demonstrated any intention to reduce China’s export momentum in response to the additional tariffs that Trump has imposed on Chinese goods.
Xi also does not seem to be concerned about any challenges to his political dominance. He has not indicated any intention of appointing a successor after more than 12 years in office. Retired leaders who could have previously constrained his authority have largely disappeared. Jonathan Jing, a researcher at the Brookings Institution and former CIA analyst who specializes in Chinese politics, asserts that there is no indication that he has relinquished his strict control over critical levers of power, including the Ministry of State Security.
Jing further states that he has not observed any indications of substantial weaknesses in Xi’s authority thus far. At this juncture in Xi’s reign, who would be so bold as to challenge him? He uses the anti-corruption apparatus like a club, prepared to strike any potential opponent.
Chinese leaders have disclosed their strategy for overseeing the world’s second-largest economy.
On March 11, the plan was approved by the thousands of delegates who convened in Beijing for the week-long “Two Sessions” meeting of China’s legislative body and top political advisory organization.
Beijing is confronted with various domestic challenges, such as the repercussions of a significant real estate crisis, high levels of local government debt, and weak consumer demand. Additionally, the United States is exerting increasing economic pressure on China, as U.S. President Donald Trump has raised tariffs on Chinese imports and threatened to impose stricter controls on American investments there.
The economy was under persistent deflationary pressure, as evidenced by the fact that consumer prices in China fell to their lowest level in 13 months in February, according to new data released on March 9.
Despite their emphasis on confidence in China’s future, Chinese leaders have been forthright about the obstacles that lie ahead. Premier Li Qiang stated at the start of the National People’s Congress (NPC) on March 5 that the nation’s growth target of approximately 5% underscores the country’s determination to face difficulties head-on and make every effort to achieve it.
The priorities set and messages sent by Xi and his officials during the event are very important for understanding Beijing’s plan to keep China’s economy growing and technology improving, especially since its relationship with the US is becoming more tense and uncertain.
Major Points of Interest from the Congress
Emphasize artificial intelligence (AI) and “future industries.”
Artificial intelligence (AI) was a prominent topic at this year’s meeting, as China’s enthusiasm for the technology increased in response to the remarkable success of tech company DeepSeek.
China is communicating to the international community that it is now entirely self-sufficient from the United States. The domestic technological innovations and ambitious economic objectives of China are akin to two distinct circles of innovation.
Additionally, Xi announced that he is actively recruiting additional personnel to support his high-tech initiative. Xi met with the leaders of the country’s largest technology companies in February at a symposium, informing them that this is the “best time” for private enterprises to “fulfill their potential.”
Increasing Demand and Accelerating Growth
Additionally, officials disclosed their intention to augment their ambitious “around 5%” development objective by conducting more aggressive government spending, which would result in a budget deficit of approximately 4% of GDP—the highest in decades.
Premier Li stated in his speech on March 5 that China will “act at a faster pace” to address weak domestic demand and make it “the primary driver” of development.
A “Fighting Spirit”
Beijing’s message over the past week has been one of confidence, despite the challenges and uncertainty surrounding the potential escalation of U.S.-China technological and trade tensions. The target audience of this message is both the Chinese populace and the citizens of Washington.
Foreign Minister Wang Yi attempted to portray China as a dependable global actor in contrast to the United States and its “America First” policies during an annual press conference held concurrently with the meeting. Additionally, he declared that China would persist in its pursuit of its objectives.
A breakthrough occurs in the presence of a blockage. He stated that innovation is present in areas where suppression is present.
A Foreign Ministry spokesperson was even more direct, asserting that China will fight until the end if the United States persists in waging a tariff war, a trade war, or any other form of conflict.